Franklin reaches out to investors over refunds

MUMBAI: Franklin Templeton India has started reaching out to the 300,000-odd investors of the six debt schemes it had closed, following a rap on the knuckles from Securities and Exchange Board of India (Sebi) on Thursday, which had asked the asset management company (AMC) to focus on refunding investors.

Franklin has written to investors to verify details, such as PAN, folio numbers, and email addresses, said investors who spoke to Mint. However, it is still not clear whether it will repay investors in full or whether a haircut will be applied.

“The AMC will begin the crucial e-voting process later this week for investor consent to begin the winding down process,” said a person familiar with the development, requesting anonymity. The six debt schemes are being wound down under Section 41 of the mutual fund regulations. So far, the AMC has only obtained the approval of the trustees to wind down the funds.

“The e-voting process would require investors to vote and authorise trustees to wind down the schemes. After that the AMC can begin refunding investors. The email addresses are being sought in cases where only phone details are available,” said the person mentioned above.

A Franklin Templeton spokesperson was not immediately available for comment.